Stock of the day: AIG

We start the new week with an analysis of AIG. It’s not the first time we analyse this instrument. When we analysed it back in mid-2021, we were bearish after AIG’s price managed to break three major supports. In our analysis we wrote:

“Yesterday, sellers absolutely dominated trading and it’s really hard to believe that buyers will perform a counter-attack today. Only the price closing a day and a week above the orange line would cancel the sell signal, but currently this is less likely to happen. As long as we stay below the orange area, the sentiment remains negative.”

The price remained on a downtrend for over a month, establishing new mid-term lows on the 44.5 USD. Since then, we’ve had an uptrend which has created a nice channel up formation (green). A channel up should be a proper buy signal, but Friday’s session brought us a breakout to the downside.

That breakout ends the positive sentiment and brings us a sell signal. Potential targets are on 55, 52 and 44 USD (yellow).  The sell signal cancels when the price comes back inside the channel up formation, but chances of that happening are now limited.